Buying a Truck for Your Business: The Options

Running a business whose nature of work includes the transportation of manufactured goods could turn out to be extremely difficult without a truck of your own or even a fleet of trucks if the volume of business operations demands it. However, buying a truck can be too large a bite for every business owner, mostly because transportation is not their primary purpose. On the other hand, owning a truck means being able to give your products a faster placement on the market and consequently make a higher profit. With this in mind, we will examine some of the ways of getting a truck for your commercial venture.

Who should lease a truck?

When you are looking into the possibility of leasing a truck, you have to know that there are certain limitations involved. First of all, your mileage is usually limited up to 15,000 miles a year. If your trucking needs can fit into that range, allowing your business to run smoothly, then leasing seems as a perfect option for you. But if your annual mileage is likely to exceed the set limit, you should look into other options. In addition to this, leasing a truck means that the financial conditions are usually more acceptable for the person who leases, so your monthly payments will be lower and you will hardly feel the truck’s depreciation to a considerable extent.

What leasing basically means is that you are renting the vehicle for an agreed period of time, i.e. it cannot fully become your property until the very end of the leasing period. Only then you are given a chance to either buy the vehicle or go for another leasing agreement. If your transportation needs are moderate, but you still think you need a brand new vehicle, leasing is undoubtedly the best option.

When to go for a used truck?

As your business keeps growing, one truck might not be enough for the increasing transportation demands. This is where used trucks come on stage. Businesspeople who want to form a fleet of trucks should probably start with a couple of second-hand trucks, and then see how things will develop and act accordingly. A smart thing to do here is to opt for the trucks whose leasing period with other companies has just expired, as those vehicles are usually in a pretty good shape. Having said that, each and every used truck will require a detailed inspection prior to the purchase.

Since buying a brand new truck is usually too expensive for small businesses, especially startups, the second-hand ones should be the option that will meet all their needs at that stage of their business development. Also, you should be very careful when it comes to the selection of places where the vehicles are sold. Instead of buying from some suspicious, unreliable dealers, you should search for good truck auctions, where you can find out everything about the vehicles and the sellers and choose the best trucks for your business. Recommendation play a key role in finding such places, both in physical and online environments, so don’t hesitate to ask your business partners about their opinion on the matter and always make sure to look for trusted, highly-reliable reviews of vendors before sealing the deal.

Why buying a new truck?

It is usually quite hard for a small business to cover all the payments needed to get a brand new truck. When you are at the very dawn of your business story, practically every cent is all so precious. If you decide to buy a completely new vehicle, you should be prepared for and capable of fulfilling two basic requirements: making a down payment and paying monthly installments, only to be given the privilege to say that you are the proud owner of the vehicle.

Perhaps the most important, if not determining factor here is the extent to which the vehicle will be used. What this practically means is that unless your truck will make more than 15,000 miles per year, there is simply no need for purchasing a new one. As a general rule, a new vehicle should be bought by business owners who have large mileage needs or whose business has already developed so much that they can pay a brand new truck in cash and avoid the pitfalls of costly long-term loans.

Eventually, when you realize that you do need a truck for your business, you should take a piece of paper and simply calculate how much money you expect to make with the vehicle. Since you are not a transportation company, for you a truck is only facilitates the money-making process and should be treated that way. The conclusion is that small businesses should either lease of get used trucks, while established and well-off companies should go for new trucks.

About Lillian Connors

Lillian Connors believes that the question of business goes beyond the maximization of profit through different money-grabbing ploys. Instead, she likes to think that ethical principles should be at the core of every commercial venture, paving the way for more balanced distribution of wealth on a global scale.

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